Priyanka Tiwari
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Indian benchmarks surged on March 17, driven by a broad-based rally led by financial stocks. The Sensex climbed over 400 points, while the Nifty surpassed the critical 22,500 mark. Several factors contributed to the rally, including a rebound in US equities, hopes of Chinese stimulus, and a stronger rupee.
At 12:13 PM, the Sensex was up 368.18 points (0.50%) at 74,197.09, and the Nifty had gained 113.15 points (0.51%), reaching 22,510.35. The market breadth remained mixed, with 1,759 stocks advancing, 1,806 declining, and 132 remaining unchanged.
Key Factors Driving the Market Rally
1) Rebound in US Equities
US stock markets rebounded strongly on Friday as investors looked for bargains after a volatile week. The rally lifted all three major US indices, with tech-related stocks making a comeback.
S&P 500 and Nasdaq posted their largest single-day percentage gains since November 6.
Despite the surge, both indices recorded their fourth consecutive weekly loss.
US President Donald Trump's trade policies continue to raise concerns, but a temporary relief rally boosted market sentiment.
Expert View:
"Investors are cautiously optimistic due to the US stock market recovery," said Vinit Bolinjkar, Head of Research at Ventura Securities. However, he noted that the trend might not last long due to concerns over the US economy and trade tensions.
2) China’s Economic Stimulus Measures
China’s recent policy interventions to revive its economy had a positive impact on Asian markets, including Indian stocks.
The Nifty Metal index surged over 1% as China's stimulus measures supported base metal prices.
South Korean and Malaysian markets also gained significantly, reflecting optimism in the region.
China announced income hikes, childcare subsidies, and eased credit restrictions, which could support broader economic recovery.
These measures are seen as crucial in revitalizing trade within Southeast Asia, benefiting key sectors linked to China’s economy.
3) Rupee Strengthens to a 3-Week High
The Indian rupee strengthened against the US dollar, contributing to positive market sentiment.
The rupee peaked at 86.8075, its strongest level since February 24.
It later settled at 86.8450, up 0.2% for the day.
Foreign banks engaged in dollar sales, while the US dollar index remained stable at 103.7.
A stronger rupee supports foreign inflows and reduces import costs, benefiting Indian businesses.
Market Outlook & Expert Opinions
Uncertainty Over US Tariffs
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted:
The market outlook remains positive in the short term, driven by declining foreign institutional investor (FII) outflows and India’s economic resilience.
Q3 FY25 GDP growth rebounded to 6.2%, January IIP rose to 5%, and February CPI inflation dropped to 3.61%—all supporting market stability.
However, concerns over US tariffs remain a key risk factor, especially for export-oriented industries.
Technical Market Trends
Shrikant Chouhan, Head of Equity Research at Kotak Securities, shared insights on key technical levels:
The market remains non-directional, finding support near 22,300/73,300 while profit-booking happens at 22,600/74,700.
Bullish breakout: If 22,650/74,900 is breached, the market could rally towards 22,800-22,900.
Bearish breakdown: If the market falls below 22,300/73,300, selling pressure may accelerate, potentially testing 22,100-22,000 levels.
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